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Employers and businesses with self-insured health plans are required to complete IRS Form 720 and pay the Patient-Centred Outcomes Research Institute (PCORI) fee. Despite being frequently referred to as a requirement of the insurance and healthcare sectors, the filing requirement is not exclusive to these industries and is highly pertinent to transportation-related entities, such as those involved in CDL drug test support, drug and alcohol testing, and pre-employment test services. 

Here is how to fully comprehend the procedure, be compliant, and file the PCORI fee correctly. 

The PCORI fee is intended to gather funding for studies that compare and assess health outcomes. Therefore, Form 720 must be submitted annually by companies who provide self-insured health plans as well as those who oversee employee health monitoring through wellness initiatives, Physical Test (NC/RE) assessments, and Follow Up Test protocols. Any company that runs drug testing facilities or offers services like random and post-accident testing must abide by this rule in order to avoid penalties. 

You must go to Part II of Form 720 in order to display the PCORI cost. Line 133 is where the PCORI fee is stated. It is calculated by multiplying the average number of lives covered by your plan by the relevant rate for a given tax year. Many transportation companies that offer Reasonable Suspicious Test programs and other health tests omit this section, but depending on your plan type, are sure to double-check the statistics. 

For plan years ending in the preceding calendar year, the PCORI charge must be paid annually by July 31. You cannot overlook this deadline if you manage employer compliance programs or serve as a service provider for CDL drug test programs. The IRS's Electronic Federal Tax Payment System (EFTPS) must be used to make payments electronically. You must, however, make sure that your internal filings are error-free even if you operate a compliance consulting or list categorization service for drug testing organizations. 

Employers, third-party administrators, and anyone else involved in drug and alcohol testing have a duty to adhere to IRS regulations and not overlook any of their PCORI and form 720 filings. Similar to how you provide services like pre-employment, post-accident, and follow-up tests, you do so for both safety and legal compliance. Make sure your company is a model for PCORI and IRS compliance, regardless of whether you are conducting a Physical Test (NC/RE) or assisting businesses in creating a list of drug testing firms.